Is the AMC stock going up?



If there is enough of the Reddit crowd in AMC stock moving forward, there is a good possibility that it will climb higher. Whether Wall Street likes it or not, the meme stocks are here to stay. That is unless the Securities and Exchange Commission (SEC) intervenes and regulates Wall Street Bets, Discord, and other social media avenues.

Back to Basics?

That said, for old-fashioned investors, the fundamentals do not support AMC at all. This is more like a $10 stock than something worth $50, $100, or $200.

For example, AMC says that it is exploring purchasing additional movie theaters. Industry experts contend that the industry has way too many cinemas as it is, so wouldn't this hemorrhage the company's already crippling finances?

The other factor is its debt. The company thinks it can resolve it hundreds of millions of dollars of debt with stock dilution, but this is perhaps a pipe dream.

Buy Now or Later?

The consensus in the financial sector is that the share price will fall about 70% from its current price (around $50).

If you bought the stock at around $2 or $3, you are better off selling now and waiting for the next decline to get back into the game. But buying when it is trading near all-time highs? Not perhaps the best strategy.

Who knows? Maybe the AMC leadership is brilliant and has a great strategy to turn the sinking ship.